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Electricity regulation and licensing
The Department of Energy and Climate regulates and monitors policy and legislation affecting Queensland's electricity industry.
The main legislation governing Queensland's electricity industry is the Electricity Act 1994 (the Act), and the Electricity Regulation 2006.
Under the Act, the regulator issues authorities (licences) for generating, transmitting and distributing electricity in Queensland.
This guide outlines electricity regulation and licensing laws in Queensland.
Electricity laws and regulations
Electricity Act 1994
The main legislation governing Queensland's electricity industry is the Electricity Act 1994 and the Electricity Regulation 2006.
The Electricity Act and Regulation deal with:
- regulating the electricity industry and electricity use, including licensing of electricity industry participants and monitoring of licence compliance
- making and approving industry codes
- approving electricity prices for standing contract customers in regional Queensland
- assisting in settling disputes between electricity entities and between electricity entities and public entities
- administrating electricity restrictions and electricity rationing procedures.
The legislation is supported by the Electricity Distribution Network Code, which sets out rules for electricity distributors and is administered by the Queensland Competition Authority, which is also responsible for administering some matters under the Electricity Act.
The Electricity Act also allows the owner, occupier or user of premises to become an on-supplier who can supply electricity to the occupants of the premises (the receivers). The legislation contains provisions that must be followed in the on-supply of electricity to receivers.
Examples of on-suppliers are shopping centre owners, caravan park owners, owners of blocks of flats and bodies corporate associated with blocks of residential or commercial units.
Electricity – National Scheme (Queensland) Act 1997
The Electricity – National Scheme (Queensland) Act 1997 governs Queensland's participation in the National Electricity Market (NEM) by applying the National Electricity Law in Queensland. This Act also applies the National Electricity Rules to the NEM in Queensland. The rules have the force of law and are made under the National Electricity Law. Copies of the rules and the law can be found on the Australian Energy Market Commission website.
Electrical Safety Act 2002
Electrical safety matters, including licensing of electrical workers and contractors, are dealt with under the:
- Electrical Safety Act 2002
- Electrical Safety (Codes of Practice) Notice 2013
- Electrical Safety Regulation 2013.
The Electrical Safety Office administers this legislation.
Energy and Water Ombudsman Act 2006
The Energy and Water Ombudsman Act 2006 was integral to the introduction of full retail competition. The main purpose of this legislation is to give small energy consumers a timely, effective, independent and just way of referring disputes about matters involving energy entities, and having the disputes investigated and resolved.
See also the Energy and Water Ombudsman Regulation 2022 and the Energy and Water Ombudsman Queensland website.
Electricity licences
Anyone intending to operate electricity infrastructure needs an appropriate electricity authority (licence), unless the infrastructure is to be located wholly on land they own or lease.
Generators need a generation authority, and network service providers need either a transmission or distribution authority to operate in Queensland. If connected to the national grid they will also need to be registered by the Australian Energy Market Operator.
In Queensland, authorities for generation, transmission and distribution are administered by the Department of Energy and Climate (the Regulator) under the Electricity Act 1994.
Retail authorities are administered at a national level by the Australian Energy Regulator (AER).
Types of licences
Generation authority
A generation authority allows you to connect a generating plant to a transmission grid or supply network.
Note: If you operate a generating plant with a capacity of 30 megawatts or less, you have a deemed special approval, under section 130 of the Electricity Regulation 2006, to connect the generating plant to a transmission grid or supply network. In this case, you would not need to hold a generation authority but may rely on the special approval given by regulation.
Transmission authority
A transmission authority allows you to operate a transmission grid and may also authorise you to connect the transmission grid to another transmission grid.
Distribution authority
A distribution authority allows you to supply electricity using a supply network within the distribution area stated in the authority.
Special approval
A special approval allows you to perform the activities specified in the approval, which may be any of the activities normally authorised by a generation, transmission or distribution authority.
Generally, special approvals are granted in special circumstances when a generation, transmission or distribution authority is not appropriate for the proposed activity.
For example, a special approval may allow the operator of an island resort, which is generating its own electricity and operating its own supply network within the resort, to perform those generation and distribution activities.
Forms and guidance
Applications must be made using the appropriate form.
These guidance documents provide information on when to apply for a new authority, and transferring, amending or surrendering an existing authority:
- Application for a generation authority (DOCX, 87KB)
- Application for a transmission authority (DOCX, 86KB)
- Application for a distribution authority (DOCX, 86KB)
- Application for a special approval (DOCX, 86KB)
- Application to transfer an authority (DOCX, 82KB)
Proforma authorities and special approvals and conditions
Copies of individual authorities and special approvals are generally not published nor made available unless the holder consents. Proformas for each type of authority and special approval are available:
- Proforma generation authority (PDF, 194KB)
- Proforma transmission authority (PDF, 63KB)
- Proforma distribution authority (PDF, 54KB)
- Proforma special approval (PDF, 54KB).
Individual authorities and special approvals may contain different or additional conditions in some cases. Many of the conditions of the authorities and special approvals are set out in the Act and Regulation. Read the Electricity Act 1994 and the Electricity Regulation 2006.
Compliance
The Regulator is responsible for monitoring compliance with the conditions of authorities and special approvals, and taking disciplinary action where necessary. The disciplinary action that may be taken includes suspension, amendment or cancellation of the authority or special approval and fines.
Electricity licence fees
Licence holders are required to pay an electricity licence fee.
You can find a detailed list of fees payable to the Department of Energy and Climate in schedule 7 of the Electricity Regulation 2006.
Contact us
For information on licensing for electricity generation, transmission and distribution contact:
Department of Energy and Climate
Email: energy.regulation@epw.qld.gov.au
Phone: 13 43 87 (business hours)
For information on retail licensing, contact the Australian Energy Regulator.
Reporting by electricity entities
Annual reports to the Regulator
All holders of electricity generation, transmission and distribution authorities and special approvals (all referred to generally as licences) are required by law to submit annual reports.
You must submit your annual report on operations for the preceding financial year to the Regulator (the Director-General of the Department of Energy and Climate) by 31 October.
The information you provide in the annual report helps the Regulator to assess your compliance with your statutory obligations and determine your continued suitability to hold a licence. It also provides information that helps the Regulator carry out its other functions under the Electricity Act 1994.
Solar Bonus Scheme reporting
The Electricity Act 1994 requires distribution entities to submit Solar Bonus Scheme data to the regulator at 6-monthly intervals. Below is the reporting template that will help authorities meet this obligation:
Minimum service standards reporting
From 1 July 2014, as part of ongoing reforms to the Queensland electricity sector, the minimum service standards (MSS) of electricity distributors and the requirement for them to report their quarterly and annual performances against the MSS were incorporated into the distribution authorities issued to them by the Regulator under the Electricity Act 1994.
Prior to this date, the MSS and reporting requirements had been contained within the Electricity Industry Code and the reports were published online by the Queensland Competition Authority (QCA).
There are currently 2 Queensland distribution entities:
- Energex Limited (Energex) in South East Queensland
- Ergon Energy Corporation Limited (Ergon Energy) in regional Queensland.
Read the distribution authorities of Energex and Ergon Energy.
The MSS annual reports of Energex and Ergon Energy can be accessed below.
Energex
Minimum service standards (MSS)
MSS requirements set limits for each financial year in relation to the frequency and duration of interruptions to distribution network services in Queensland.
An interruption includes any temporary unavailability of electricity supply to a customer associated with an outage of the electricity supply network, but excludes the impacts of certain events (such as severe weather events).
Energex's MSS limits are specified in its distribution authority. Energex must aim to achieve a higher level of performance than the set limits.
SAIDI and SAIFI
Reliability performance is expressed using the following measures:
- System average interruption duration index (SAIDI) is the sum of the duration of each interruption (measured in minutes), divided by the total number of customers (averaged over the financial year).
- System average interruption frequency index (SAIFI) is the total number of interruptions, divided by the total number of customers (averaged over the financial year).
Energex's SAIDI and SAIFI performance is measured and reported based on the broad feeder categories of CBD, urban and short rural feeders. The MSS limits differ between feeder types reflecting the performance that should reasonably be achieved on each type.
Energex SAIDI limits (minutes per customer)
Feeder type | 2019–20 | 2020–21 | 2021–22 | 2022–23 | 2023–24 | 2024–25 |
---|---|---|---|---|---|---|
CBD | 15 | 15 | 15 | 15 | 15 | 15 |
Urban | 106 | 106 | 106 | 106 | 106 | 106 |
Short rural | 218 | 218 | 218 | 218 | 218 | 218 |
Energex SAIFI limits (interruptions per customer)
Feeder type | 2019–20 | 2020–21 | 2021–22 | 2022–23 | 2023–24 | 2024–25 |
---|---|---|---|---|---|---|
CBD | 0.15 | 0.15 | 0.15 | 0.15 | 0.15 | 0.15 |
Urban | 1.26 | 1.26 | 1.26 | 1.26 | 1.26 | 1.26 |
Short rural | 2.46 | 2.46 | 2.46 | 2.46 | 2.46 | 2.46 |
Ergon Energy
Minimum service standards (MSS)
MSS requirements set limits for each financial year in relation to the frequency and duration of interruptions to distribution network services in Queensland.
An interruption includes any temporary unavailability of electricity supply to a customer associated with an outage of the electricity supply network, but excludes the impacts of certain events (such as severe weather events).
Ergon Energy's MSS limits are specified in its distribution authority. Ergon Energy must aim to achieve a higher level of performance than the set limits.
SAIDI and SAIFI
Reliability performance is expressed using the following measures:
- System average interruption duration index (SAIDI) is the sum of the duration of each interruption (measured in minutes), divided by the total number of customers (averaged over the financial year).
- System average interruption frequency index (SAIFI) is the total number of interruptions, divided by the total number of customers (averaged over the financial year).
Ergon Energy's SAIDI and SAIFI performance is measured and reported based on the broad feeder categories of urban, short rural and long rural feeders. The MSS limits differ between feeder types reflecting the performance that should reasonably be achieved on each type.
Ergon Energy SAIDI limits (minutes per customer)
Feeder type | 2019–20 | 2020–21 | 2021–22 | 2022–23 | 2023–24 | 2024–25 |
---|---|---|---|---|---|---|
Urban | 149 | 149 | 149 | 149 | 149 | 149 |
Short rural | 424 | 424 | 424 | 424 | 424 | 424 |
Long rural | 964 | 964 | 964 | 964 | 964 | 964 |
Ergon Energy SAIFI limits (interruptions per customer)
Feeder type | 2019–20 | 2020–21 | 2021–22 | 2022–23 | 2023–24 | 2024–25 |
---|---|---|---|---|---|---|
Urban | 1.98 | 1.98 | 1.98 | 1.98 | 1.98 | 1.98 |
Short rural | 3.95 | 3.95 | 3.95 | 3.95 | 3.95 | 3.95 |
Long rural | 7.40 | 7.40 | 7.40 | 7.40 | 7.40 | 7.40 |
Annual MSS reports
- 2013–2014 annual MSS report (PDF, 238KB)
- 2014–2015 annual MSS report (PDF, 557KB)
- 2015–2016 annual MSS report (PDF, 330KB)
- 2016–2017 annual MSS report (PDF, 1MB)
- 2017–2018 annual MSS report (PDF, 244KB)
- 2018–2019 annual MSS report (PDF, 245KB)
- 2019–2020 annual MSS report (PDF, 820KB)
- 2020–2021 annual MSS report (PDF, 822KB)
- 2021–2022 annual MSS report (PDF, 822KB)
- 2022–2023 annual MSS report (PDF, 824KB)
© The State of Queensland 1995–2024
- Last reviewed: 08 Sep 2021
- Last updated: 08 Sep 2021